Block Energy plc recorded a near five-fold increase in revenue and narrowed losses from its oil and gas operations in Georgia.
FINANCES
The company’s audited results for the year ended 31 December 2021 showed revenue of $6,114,000 (2020: $1,255,000) and other income included $5,000 (2020: $100,000) for sales of materials.
Losses for the year narrowed to $4,783,000 (2020: $5,512,000). Block Energy added that during the year, the group had not yet achieved sufficient scale for the revenue to cover the group’s costs.
PRODUCTION AND SALES
Production totalled 108,000 barrels of crude oil (2020: 25,000 barrels). Block Energy attributed the increase primarily to oil and gas from the wells in Block XIB (acquired in late 2020) and from new wells/sidetracks.
The company began gas sales on 15 February 2021 and until 31 December 2021, sold 191.5 Mcf of gas for net revenue of $596,000.
STRATEGY
Chief executive Paul Haywood said that the company had during 2021 swiftly integrated and advanced the appraisal and development opportunities throughout its enlarged portfolio.
“It also delivered on a key milestones, including commencing gas sales and execution of a multi well drilling campaign.
“This relentless drive to advance the company and maintain consistent momentum has placed it in a stronger position to continue to create value for all shareholders in the current year.
“The planned three-project strategy is designed to efficiently deploy existing cash reserves into further development drilling, throughout the XIF and XIB licences.
“This, combined with our enhanced understanding of the subsurface and the company being profitable, sets the stage for what we forecast to be a rewarding year and we look forward to updating shareholders on short and medium term milestones as we advance.”